Ulaanbaatar
Oil processing plant to be built in Khentii
PoliticsUlaanbaatar /MONTSAME/ Minister of Industry D.Erdenebat has been assigned to take some preparation measures for building an oil processing plant and piping system at Bor-Undur soum of Khentii aimag. This decision was made by the cabinet regular meeting Monday.
These measures include a tender to select investor consortium coordinating at least one national company, and a managing of a conclusion of concession agreement.
According to the preliminary feasibility study, Khentii’s Bor-Undur is the best location considering its infrastructure, logistics for crude oil and final products, and a closeness to the market, leaving behind other proposed locations such as Choir, Sainshand and Choibalsan.
A development of the processing plant will take four years. With the commissioning of the plant, Mongolia’s import of oil products will decrease starting from 2021, improving trade balance, creating new jobs and reducing a dependency on imported supplies.
